I am also curious how the space elevator will produce revenue for the government (unless you plan on charging for each ride when it is finished).
He means we won't have to spend the money on all the rocket fuel that we do now to get people into space, saving money.
Of course, I am not exactly familiar with the technology here, but how much money would it feasible take to
a. have the technology in space to build rockets or
b. using the space elevator to transfer rocket parts etc. into space, which then I would assume would have to be reconstructed there.
I would guess this elevator would not be strong enough to carry a whole rocket into space (the best solution)